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Investors Eye Middle East Amid Political Shift, But Trump’s Gaza Plan Sparks Uncertainty

by THEFUTURE.TEAM

February 10, 2025

A historic transformation is reshaping the Middle East, drawing international investors back into the region with hopes of stability and economic recovery. While a fragile ceasefire in the Israel-Hamas conflict and leadership changes in Syria and Lebanon signal potential progress, former U.S. President Donald Trump’s proposal to take control of Gaza has introduced fresh concerns.

Renewed Investor Confidence

Egypt, a central player in recent peace talks and the region’s most populous nation, recently conducted its first dollar debt sale in four years—an impressive turnaround from its near-economic collapse. Israel and Lebanon have also seen a resurgence in investor interest, particularly in bonds, as the market bets on a long-term resolution to Lebanon’s financial and political turmoil.

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Charlie Robertson, an emerging markets expert at FIM Partners, notes that recent geopolitical shifts have fundamentally altered the region’s dynamics, offering the possibility of sustained stability—so long as Trump’s Gaza proposal doesn’t reignite tensions.

Market Reactions To Trump’s Proposal

Trump’s call to “clean out” Gaza and turn it into a “Riviera of the Middle East” has met with strong international backlash. In response, Egypt has scheduled an emergency Arab summit for February 27 to discuss the implications for Palestinians and regional stability.

Investors are closely watching how this unfolds. S&P Global has indicated it may lift Israel’s downgrade warning if the ceasefire holds, potentially paving the way for a significant Israeli debt sale. However, investors remain wary of political volatility.

Israel’s Economic Outlook

While bond investors are returning, Israel’s stock market has struggled since the ceasefire. The country had been one of the strongest performers globally after the October 2023 attacks but has since dipped, aligning with a broader U.S. tech selloff.

Sabina Levy, head of research at Leader Capital Markets, highlights that markets are more concerned with internal political conflicts than the war itself. Meanwhile, Economy Minister Nir Barkat is pushing for aggressive economic growth strategies.

Lebanon And Egypt: Uncertainty Amid Opportunity

Lebanon’s debt-laden economy is showing signs of life as its bonds have surged in value. The country’s new president, Joseph Aoun, is turning to Saudi Arabia for support, which could further distance Lebanon from Iranian influence. However, a $45 billion debt restructuring remains a significant hurdle.

Meanwhile, Egypt faces pressure from the U.S. as Trump’s plan envisions Cairo accepting two million Palestinian refugees. Analysts warn that Washington could leverage Egypt’s reliance on foreign aid to push its agenda, posing risks to the country’s financial stability.

The Path Ahead

As investors navigate the evolving landscape, key concerns include continued Houthi attacks on Red Sea shipping, Lebanon’s economic restructuring, and Israel’s political stability. While the region presents opportunities, the uncertainty surrounding Trump’s influence keeps markets on edge.

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Cyprus Remains Among EU’s Lowest Renewable Electricity Producers

Cyprus remained among the European Union’s weakest performers in renewable energy adoption in 2025, with renewables accounting for 27.5% of gross electricity consumption, according to new data published by Eurostat.

Across the EU, renewable sources supplied 49.9% of gross electricity consumption last year, bringing the bloc close to generating half of its electricity from renewable energy.

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Cyprus Remains Among The EU’s Lowest Performers

Cyprus ranked among the EU countries with the lowest share of renewable electricity, ahead of only Malta at 11.2%, the Czech Republic at 19.2%, Luxembourg at 23.3% and Slovakia at 24.1%.

Across the country’s broader energy system, renewables accounted for 21.5% of gross final energy consumption in 2025.

EU Renewable Electricity Continues To Grow

Renewables supplied 49.9% of gross electricity consumption across the EU in 2025, up from 47.5% a year earlier. Since Eurostat began collecting comparable data in 2004, the share has risen from 15.9%.

Austria recorded the highest share at 90.8%, followed by Sweden at 89.2%. Denmark generated 77.7% of its electricity from renewable sources, followed by Portugal at 65.6%, Greece at 60.9% and Spain at 60.7%.

Overall Energy Transition Still Has Work Ahead

Renewables accounted for 26.2% of the EU’s gross final energy consumption in 2025, up from 25.2% in 2024 and 9.6% in 2004.

Despite the increase, the bloc remains below its legally binding target of 42.5% by 2030. According to Eurostat, achieving that goal will require an average annual increase of 3.3 percentage points between 2026 and 2030.

Sweden recorded the highest overall renewable energy share at 65.4%, followed by Finland at 53% and Denmark at 48.2%. Belgium recorded the lowest share at 14.9%, followed by Slovakia at 16.3% and Ireland at 17.2%.

Heating And Cooling Also Show Steady Progress

Renewable energy accounted for 27.4% of heating and cooling across the EU in 2025, the highest level since comparable records began in 2004. The share increased by 0.7 percentage points from 2024, slightly below the long-term annual average increase of 0.75 percentage points.